Is it true that the property in average will loose 10 to 30% in value in the next few year in canada? Appenrently the property are 30% overvalued... Im looking to invest in real-estate, i just don't know when and what!!! I've been reading a lot about it but everyone says the opposite! What do you guys think about it? especially toronto market i'm talking about.
real estate..... is it true??
- Thread starter parisbeautiful222
- Start date
I would say buy a house. I think condos are overpriced. Houses not so much. I've been hearing of a housing price correction and a cmeltdown in real estate for the last five years. Nobody knows.
If you can afford it buy. In the long run its always a good investment
If you can afford it buy. In the long run its always a good investment
you can not go wrong with single-family detached home. There is little to no stock. Stay away from the condo market, they are building to stock. The faster you get in the more money you make. Of course always buy the best you can afford. Think resale, so some houses, areas, are better then others. Everyone should own their own home.
that "correction" in 89 cost my buddys father his dream cottage and his retirement plans. Bought a condo at Palace Pier just when Bramalie Construction went out of business and well, you know the rest
There won't be a housing bubble when there is so much demand right now. when everybody is buying there is no need to worry even if they insist it is over valued.
value is perceived by one's wroth and their desires it has little to do with how much it costs to make. Same thing why people spend thousand of dollars on diamonds it's just a shiny stone
value is perceived by one's wroth and their desires it has little to do with how much it costs to make. Same thing why people spend thousand of dollars on diamonds it's just a shiny stone
We're in a middle of a housing bubble and anyone that say's otherwise is either lying or stupid. But to answer the question. Are you buying real estate as investment income or to live ? If for investment find the right property in the right location. I suspect that interest rates will never go up until they have to. And that scenario is hyperinflation but at that point people will be boiling shoelaces for dinner. So take out the longest mortgage at the lowest rate possible.
If buying for living in the abode take into account property taxes over the life of the home you plan to live in. Add the caveat that taxes are unlikely to go down so add a % increase year over year. Try and get an accurate idea of inflation gas, water, electricity, etc... add that to the equations. And then of course upkeep. I live in a 20 year old home and have replaced windows, roof, furnace, added water softener, repaired water damage, gas fire place, appliances, plumbing and that is a start. I've never believed the home ownership BS as being a long term investment when one accounts for inflation and expenses over 20 years. But as a rental property that brings in monthly income and it exceeds the costs... sure.
BS
If buying for living in the abode take into account property taxes over the life of the home you plan to live in. Add the caveat that taxes are unlikely to go down so add a % increase year over year. Try and get an accurate idea of inflation gas, water, electricity, etc... add that to the equations. And then of course upkeep. I live in a 20 year old home and have replaced windows, roof, furnace, added water softener, repaired water damage, gas fire place, appliances, plumbing and that is a start. I've never believed the home ownership BS as being a long term investment when one accounts for inflation and expenses over 20 years. But as a rental property that brings in monthly income and it exceeds the costs... sure.
BS
As so often happens, most of he responses above are simplistic and don't respond to the initial question. You say you are looking to invest in real estate. What do you mean by this?
If you are looking to buy a house or even a condo and live in it - then even if the market is currently over-valued, you will enjoy the (non financial) benefits of having and using your home. Hopefully over time the value of your home will increase in value so the current over-valuation of the market is not really relevant. But don't buy on the expectation that you will be able to flip it for a profit in the short-term. While this may happen - don't count on it and transaction costs (land transfer tax, broker's commissions) can quickly eat up your profit. Buy something that makes sense to you in terms of location, size, lifestyle, and enjoy your home.
If however you are thinking of purchasing something purely for investment purposes, then personally I would not buy either a house or a condo. Especially for unsophisticated investors, they often underestimate the costs and work associated with purchasing a small investment property. You have to start worrying about tenants, collecting rent, dealing with repairs and damage, etc. As a Landlord (for a residential property) you are also constrained by the Residential Tenancies Act. If the property sits vacant for a month in between tenants - there goes your entire return for the year as you still need to cover the taxes, insurance and maintenance costs. As I said - there are many potential pitfalls to owning a small investment property.
If you believe real estate is an attractive area to invest your money (as I do) - rather then buying a specific property I would invest my money in one of the many REITS (Real estate Investment Trusts) that trade on the TSX. You can choose a REIT that specializes in retail shopping plazas (eg. Riocan, Calloway), commercial office buildings (H&R, Allied) residential apartment buildings (CAP Reit, Boardwalk), nursing homes, industrial or some that invest in all areas. There are even REITs that were spun off from individual retailers - eg. Canadian Tire, and Sobeys each have associated REITs. The benefit of a REIT is that you don't have all the hassles associated with property ownership, you are buying into a portfolio of good quality and professionally managed properties, most pay a monthly dividend (probably in the 5% - 6% range), there is the potential for good capital gains over time, and most of all it is liquid - you can sell it any time.
That would be my two cents worth.
If you are looking to buy a house or even a condo and live in it - then even if the market is currently over-valued, you will enjoy the (non financial) benefits of having and using your home. Hopefully over time the value of your home will increase in value so the current over-valuation of the market is not really relevant. But don't buy on the expectation that you will be able to flip it for a profit in the short-term. While this may happen - don't count on it and transaction costs (land transfer tax, broker's commissions) can quickly eat up your profit. Buy something that makes sense to you in terms of location, size, lifestyle, and enjoy your home.
If however you are thinking of purchasing something purely for investment purposes, then personally I would not buy either a house or a condo. Especially for unsophisticated investors, they often underestimate the costs and work associated with purchasing a small investment property. You have to start worrying about tenants, collecting rent, dealing with repairs and damage, etc. As a Landlord (for a residential property) you are also constrained by the Residential Tenancies Act. If the property sits vacant for a month in between tenants - there goes your entire return for the year as you still need to cover the taxes, insurance and maintenance costs. As I said - there are many potential pitfalls to owning a small investment property.
If you believe real estate is an attractive area to invest your money (as I do) - rather then buying a specific property I would invest my money in one of the many REITS (Real estate Investment Trusts) that trade on the TSX. You can choose a REIT that specializes in retail shopping plazas (eg. Riocan, Calloway), commercial office buildings (H&R, Allied) residential apartment buildings (CAP Reit, Boardwalk), nursing homes, industrial or some that invest in all areas. There are even REITs that were spun off from individual retailers - eg. Canadian Tire, and Sobeys each have associated REITs. The benefit of a REIT is that you don't have all the hassles associated with property ownership, you are buying into a portfolio of good quality and professionally managed properties, most pay a monthly dividend (probably in the 5% - 6% range), there is the potential for good capital gains over time, and most of all it is liquid - you can sell it any time.
That would be my two cents worth.
No!
Buy a good house (not a condo) now before the introduction of the carbon tax. This tax will most likely push housing prices up again. I have never lost money on a house and I've own a few.
Remember they don't make land anymore and the GTA is in the southern most part of the country.
Good luck.
Just listen to one.of.a.kind, he has the best advice! He knows what he is talking about!
:rofl::rofl::rofl:
And how many do you think he has own?
Perry
:rofl::rofl::rofl:
And how many do you think he has own?
Perry
Oh, how I admire you!
Oooh, you have hurt my feelings!
Perry
Thanks everyone, i am looking for an invest property, i won't necessary live in it, i just wanna buy it, rent it out, and maybe put some money on renovation if it need to, i wanna be able to sell it couple years later with a good profit. I've never invest before, i am really anxious about it. I wanna buy a property that I'm able to make the most profit possible.
Every year for the last 10 plus years I hear the same thing. Wait for a correction and with waiting now you're priced out.
I bought a investment house 7 years ago, I collect rent every month and the value of the house has doubled. I took my time and replaced most of the things in the house, new furnace, electrical panel, upgraded insulation, fence, new roof etc. I did most of the work myself but if you keep the home in good condition you will keep on collecting rent as condos are not going to hold their value in the long run.
Yes and yes. That's pretty much what I've done over the years. Condos built in the last five years were built barely to code. Major repairs could start to happen as early as 2020. They're really not a good investment.
